The tax-to-GDP ratio varies significantly between Member States, with the highest share of taxes and social contributions in percentage of GDP in 2018 being recorded in France
In 2018, taxes on production and imports made up the largest part of tax revenue in the EU, closely followed by net social contributions and taxes on income and wealth
The ordering of tax categories was slightly different in the euro area
The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of Gross Domestic Product, stood at 40.3% in the European Union (EU) in 2018, a slight increase compared with 2017 (40.2%).
In the euro area, tax revenue accounted for 41.7% of GDP in 2018, up from 41.5% in 2017.
This information comes from a publication issued by Eurostat, the statistical office of the European Union. Tax indicators are compiled in a harmonised framework based on the European System of Accounts (ESA 2010), enabling an accurate comparison of the tax systems and tax policies between EU Member States.
The tax-to-GDP ratio varies significantly between Member States, with the highest share of taxes and social contributions in percentage of GDP in 2018 being recorded in France (48.4%), Belgium (47.2%) and Denmark (45.9%), followed by Sweden (44.4%), Austria (42.8%), Finland (42.4%) and Italy (42.0%).
At the opposite end of the scale, Ireland (23.0%) and Romania (27.1%), ahead of Bulgaria (29.9%), Lithuania (30.5%) and Latvia (31.4%) registered the lowest ratios.
Compared with 2017, the tax-to-GDP ratio increased in sixteen Member States in 2018, with the largest rise being observed in Luxembourg (from 39.1% in 2017 to 40.7% in 2018), ahead of Romania (from 25.8% to 27.1%) and Poland (from 35.0% to 36.1%).
In contrast, decreases were recorded in seven Member States, notably in Denmark (from 46.8% in 2017 to 45.9% in 2018), Hungary (from 38.4% to 37.6%) and Finland (from 43.1% to 42.4%).
In 2018, taxes on production and imports made up the largest part of tax revenue in the EU (accounting for 13.6% of GDP), closely followed by net social contributions (13.3%) and taxes on income and wealth (13.2%).
The ordering of tax categories was slightly different in the euro area. The largest part of tax revenue came from net social contributions (15.2%), ahead of taxes on production and imports (13.3%) and taxes on income and wealth (13.0%). Looking at the main tax categories, a clear diversity prevails across the EU Member States.
In 2018, the share of taxes on production and imports was highest in Sweden (where they accounted for 22.4% of GDP), Croatia (20.1%) and Hungary (18.6%), while they were lowest in Ireland (8.0%), Romania (10.7%) and Germany (10.8%).
For taxes related to income and wealth, the highest share by far was registered in Denmark (28.9% of GDP), ahead of Sweden (18.6%), Belgium (16.8%) and Luxembourg (16.4%).
In contrast, Romania (4.9%), Lithuania (5.7%) and Bulgaria (5.8%) recorded the lowest taxes on income and wealth as a percentage of GDP.
Net social contributions accounted for a large proportion of GDP in France (18.0%) and Germany (17.1%), while the lowest shares were observed in Denmark (0.9% of GDP), Sweden (3.4%) and Ireland (4.2%). ■